Shyam Metalics and Energy Limited has unveiled an ambitious capital expenditure plan amounting to ₹2,700 crore. This initiative aims to enhance the company’s manufacturing capabilities and expand its product portfolio.
The board of directors has approved several new projects and expansion plans, which include the establishment of a Long & Speciality Wire Rod and Bar Mill (SBQ Mill) with a furnace in Kharagpur, expected to have a capacity of 8,00,000 TPA. Additionally, there will be an expansion of the stainless steel segment in Sambalpur, increasing from 0.50 MTPA to 0.60 MTPA. This will involve the installation of facilities such as a SS Cold Rolling Mill, SS Precision Cold Rolling Mill, SS Hot Rolling Annealing & Pickling Line, and a SS Bright Annealing Line. These projects are slated for completion by 31st March 2029 and 1st March 2029, respectively.
The funding for these projects will be sourced from a mix of internal accruals and borrowings, as determined by the management. The company anticipates that these investments will significantly bolster its manufacturing capacity, operational efficiency, and market position, thereby enhancing shareholder value in the long term.
In addition to the capex plan, Shyam Metalics has declared a final dividend of ₹2.70 per equity share, representing 27% of the face value of ₹10 each, for the financial year 2025-26. This dividend is subject to shareholder approval at the upcoming Annual General Meeting.
Furthermore, the company has appointed M/s. Ernst & Young LLP as its internal auditors and M/s. BSS & Associates as cost auditors for the financial year 2026-27. These appointments were recommended by the Audit Committee and approved by the board.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).